A problem of many corporations in our present age is the focus on economic profits of the enterprise without paying attention to costs borne outside of the enterprise. Although the cost of resources used to manufacture products might be considered in a master production schedule, the amounts of carbon byproducts introduced into the environment are often disregarded. Carbon, such as in the form of carbon dioxide, is one of many pollutants that can be harmful to the environment. These pollutants are sometimes referred to as “greenhouse gases” because they trap heat that should escape from Earth's atmosphere. The natural outcome of excessive amounts of greenhouse gases being emitted into the Earth's atmosphere is the warming of the planet, which can lead to detrimental harm to the planet and its inhabitants.
Measures should be taken to reverse the current trends or the resulting global warming may continue at an alarming rate. Many environmental organizations have tried to encourage leaders of governments and corporations to preserve both economic and natural resources. In response to public concern, some leaders have proposed steps to prevent a worsening of these consequences over the next several years. Because of successful environmental awareness programs and emissions caps imposed through legislation, many corporations have made attempts to reduce greenhouse gas emission.
The Chicago Carbon Exchange (“CCX”) is a trading system that recently auctioned carbon financial instrument (“CFI”) contracts at the request of the United States House of Representatives. CCX is also a registry system that is voluntary to join, but legally binding once a corporation has joined. The CFI contracts encourage corporations to reduce greenhouse gas emissions through the process of trading carbon credits. Emission reductions achieved through CCX are made through a legally binding compliance regime, providing independent third party verification by the National Association of Securities Dealers (“NASD”).